Rental road to riches can be rocky
This post sponsored by Lawyers Conveyancing
An article by Mary Holm
Even with skill and good luck there are many risks that can make or break would-be property investors.
A downside of owning several rental properties is the time and effort needed to maintain your investments. Photo / Getty Images
My partner and I have our own home at the moment with a sizeable mortgage, and we’re thinking of starting a property rental portfolio.
We’ve been told that it works best to have a few properties, rather than just one or two. Would you be so kind as to give us your opinion on building a property portfolio?
How’s your risk tolerance? A move like this could make you either wealthy or bankrupt.
If things go well, you benefit from growth not only on your investment but also the money you’ve borrowed. More than a few people have retired young on the back of rental property. But they’re the ones we tend to hear about. The losers don’t talk about it.
There’s skill in property investing, which comes from getting to know the market. There’s also a lot of luck – something that some successful property investors won’t admit. You could win or lose on property price trends, rent trends, luck in your timing of purchases and sales, availability and reliability of tenants, whether properties need unexpected maintenance and so on.
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